South Africa’s ferrous scrap exports surged by 87pc to 57,217mt in Feb 2020 from Feb 2019 and by 2pc from Jan 2020, according to the data released by the customs department. Major importers from South Africa included India, Bangladesh and Pakistan accounting for 90pc of the total February exports.
In Feb 2020, South Africa’s exports to India were 64pc of the total or 39,379mt, up by 128pc from the prior year and 69pc from Jan 2020. India imports African heavy melt scrap mainly to blend it with the other alternatives like sponge iron for cost efficiency.
Pakistan imported 7,431mt of scrap, up by 37pc from the prior year and by 66pc from the prior month while Bangladesh imported 4,452mt, down by 23pc from Feb 2019, but up by 63pc from January.
Steel and ferrous scrap demand, however, has taken a hit in March and will continue to be bearish in April due to COVID-19 related lockdowns in many countries, including South Africa and India.